Issue link: https://iconnect007.uberflip.com/i/1512467
26 SMT007 MAGAZINE I DECEMBER 2023 we've maybe had one or two. We're benefiting, and so are our customers and vendors, because we haven't seen a tightening in the credit market. One popular program we have offers custom- ers up to $500,000 in credit approval with just a credit application and no financial review. It's based on their pay history, how long they've been in business, and public credit reports. But it says a lot that lenders are willing to offer that funding opportunity to our clients without reviewing financial statements. at is a result of how the portfolios have performed. Matties: The economic indicators we hear about on the retail consumer side don't seem to overlap into manufacturing. Carey: I don't think it's overlapping in electronics. Even in 2003, a CitiCapital (former employer) called me regarding a problem account, and I asked quite bluntly, "Despite all the industry problems, how's my portfolio performing?" His reply was, "Surprisingly well." So, if we can get that kind of response during that difficult time, we can absorb the current situation pretty well. So, I am optimistic. ere will be some pain, but we're positioned well, and we'll be fine. Matties: How does the CHIPS Act influence the businesses that you're pursuing? Carey: To bring semiconductor business back, we need to go in with our eyes open and be patient. If you're building chips over there, it certainly makes sense to fabricate and assem- ble boards over there. Devices built in the U.S. are more likely to be assembled and board fab- ricated in the U.S. Pine: Over time, I think we will see an increase in domestic assembly and board fab business tied to the CHIPS Act. Andy Shaughnessy: Over the years, Wall Street has been skittish about EDA tools and the circuit board market, in general— something they didn't really understand 10 years ago. Do you see that changing? Does Wall Street seem to be getting more accustomed to it? Pine: We have seen venture capital compa- nies become more involved. We see them pur- chase contract manufacturers and start building networks across the country by buying existing assembly shops. at says they're see- ing value. Venture capitalists are in it to make some money and be able to grow that busi- ness to go public. Carey: is industry isn't overly proprietary. We don't create the product; we build it. If you invent the products, and you're selling the newest thing, that gets Wall Street excited, but you also have proprietary risk. I agree with Amy that venture capitalists like this market. ere is less product risk and still good profit margins with the right technology. Matties: Are green initiatives a factor in finance today? Carey: Yes, lead-free and other changes have been good for the industry and the environ- ment. We have financed this equipment in the past. Not sure this is what I would call a factor in finance today. We trust the environmental equipment purchases made by the EMS com- panies and assist in the financing. Johnson: What can we expect for 2024? Carey: ere's a lot of quoting going on. In this Devices built in the U.S. are more likely to be assembled and board fabricated in the U.S.